The sales tax rate in Augusta, Kansas is 8.50%. That total combines the 6.50% Kansas state rate, a 0% Butler County rate, and a 2.00% city rate charged by Augusta itself.1City of Augusta. Taxes Groceries are the main exception: the state portion no longer applies to food, so unprepared grocery items are taxed at just the 2.00% local rate.
How the 8.50% Rate Is Built
Three layers stack to produce the Augusta rate:
- Kansas state tax: 6.50%
- Butler County tax: 0.00%
- City of Augusta tax: 2.00%
Retailers collect the combined 8.50% as a single line on the receipt. Clothing, electronics, furniture, household goods, and prepared meals all carry the full rate.
Groceries Are Taxed at 2.00%
Kansas eliminated its 6.50% state sales tax on food and food ingredients effective January 1, 2025. Local sales taxes still apply, so groceries bought in Augusta are taxed at the city’s 2.00% rate rather than 8.50%.2Kansas Department of Revenue. Food Sales Tax Rate Reduction
The reduced rate covers most unprepared food: produce, meat, dairy, and packaged goods from grocery shelves. Prepared food is treated differently. Restaurant meals and items from a deli counter are still taxed at the full 8.50%, which is why a grocery store’s hot bar rings up at a higher rate than the checkout lane.
Taxable Services and Digital Products
Kansas taxes labor tied to physical property. Charges to install, repair, or maintain tangible personal property are generally subject to sales tax, so if you hire someone to fix an appliance or install a ceiling fan, the labor on that bill is taxable at 8.50%.3Kansas Department of Revenue. Pub. KS-1510 Sales Tax and Compensating Use Tax
Digital products split along product lines. Electronic downloads of music, movies, photographs, and e-books are not taxable because Kansas does not treat them as tangible personal property. Prewritten computer software is taxable even when delivered electronically, and so are television and radio subscription services streamed over the internet. Custom software written for a single buyer is not taxed, and charges to access information on a remote database are not taxed either.4Kansas Department of Revenue. Revised Sales Tax Guidelines – Taxing Charges for Computer Software Products and Services
Common Exemptions
Several purchases are exempt from Augusta’s sales tax when the buyer provides the right documentation:
- Goods bought for resale by a registered retailer, using a completed resale exemption certificate (Form ST-28A). The exemption covers inventory only; tools, equipment, and supplies the business consumes itself remain taxable.5Kansas Department of Revenue. ST-28A Resale Exemption Certificate
- Prescription drugs, insulin, prosthetic devices, and oxygen delivery equipment prescribed to individual patients.6Kansas Department of Revenue. For Profit Hospitals, Surgical, Dialysis, and Other Medical Facilities
- Purchases by recognized nonprofits and government entities with a Kansas Department of Revenue exemption certificate.
- Agricultural machinery (Form ST-28F) and integrated production machinery and equipment used directly in manufacturing (Form ST-201).7Kansas Department of Commerce. Exemption Certificates Pub KS-1520
Sellers who accept an exemption certificate in good faith are protected if the buyer later turns out to be ineligible, but the certificate has to be complete and kept on file. Missing or incomplete paperwork can shift the tax bill back to the seller during an audit.
Online and Out-of-State Purchases
If you buy something from an out-of-state seller that does not charge Kansas tax, you owe compensating use tax. The combined use tax rate for Augusta residents mirrors the sales tax rate at 8.50%, and it is based on the full cost of the goods including shipping and handling. Labor services are not subject to use tax.8Kansas Department of Revenue. Consumers’ Compensating Use
Most large online retailers already collect Kansas tax because remote sellers with more than $100,000 in annual gross receipts from Kansas customers are required to register.9Kansas Department of Revenue. Notice 21-17 Remote Sellers The gap tends to show up with smaller sellers, private-party purchases across state lines, or things bought while traveling. Individual consumers report and pay use tax using Form CT-10U.
Business Filing in Brief
Any business selling tangible personal property or taxable services in Augusta must register with the Kansas Department of Revenue before making sales. Each physical location needs its own certificate, displayed at the business.10Kansas Office of Revisor of Statutes. Kansas Code 79-3608
Sales tax returns are filed on Form ST-36, the Retailers’ Sales Tax Return, through the Kansas Customer Service Center portal.11Kansas Department of Revenue. Kansas Retailers’ Sales Tax Return Filing frequency is based on last year’s liability: annual filers (up to $1,000) file once by January 25, quarterly filers ($1,000.01 to $5,000) file by the 25th of the month after each quarter, and monthly filers (over $5,000) file by the 25th of the following month.12Kansas Department of Revenue. Frequently Asked Questions About Sales
Late returns carry a penalty of 1% of the unpaid balance per month, up to 24%, plus interest of 8% annually (0.67% per month) for 2026.13Kansas Department of Revenue. Penalty and Interest Even small underpayments add up quickly once a few months pass.